Business Final

According to your textbook, _____ suffers less business corruption than any other country.

Danmark

SWOT analysis takes place during:

Strategic Planning

They key to coming up with a great business idea is to:

fill an unmet need

The toughest part of the problem solving process is ________.

selecting your best option

All of the following are common titles among middle managers except _______

supervisor

A local bakery is acting as a _____ when it sells desserts to a restaurant.

wholesaler

In addition to being creative people, entrepreneurs are generally also _____.

willing to take risks

Which of the following is not true for a sole proprietor?

you have limited liability

Entrepreneurs and small business people who come up with many good product ideas because they need to have the following attributes except:

young

According to the SBA, ____ percent of U.S. jobs come from small businesses

55

The free market system was espoused by _____ in his book The Wealth of Nations.

Adam Smith

In communicating with other countries or cultures, it's valuable to understand all of the following except _____.

Always use English because everyone should know it in all countries

The highest law in the U.S. is:

Constitutional law

IP law includes:

Copyright law Patent law Trademark law

The area of study _____ concerns the use of scarce resources to produce outputs—goods and services—and how they're distributed for consumption.

Economics

Advantages of a person to get a McDonald's franchise include the following except:

Get % of revenue sharing from all other McDonald's restaurants

What are the major accomplishments that a company plans to achieve over a long period of time, generally five years?

Goals

A very important consideration in picking a legal form of business is

How much legal liability you are willing to accept

Those in the positions of ________ are important because they report to top-level managers while overseeing the activities of first-line managers.

Mid-level managers

Those in the positions of _______ oversee the activities of first-line managers.

Middle managers

What is not true of Board of Directors?

Must also be shareholders

Four functions of management are:

Plan, Organize, Lead, Control

A men's clothing company structures its organization based on shirts, pants, jackets, shoes organized the company by:

Product

The process _______ is to alter existing organizational structures to make a firm more competitive under changing conditions.

Restructuring

If you're asking yourself whether you want to make it easy for the ownership of your new business to change hands (ie, sell to others), which of the key questions about legal form of ownership are you posing?

Should it be possible for the business to continue without you?

Which of the following is not among possible advantages of membership in the European Union (EU)?

The EU guarantees starting salaries for government workers in any EU nation.

Which of the following is an advantage associated with divisional organizations?

The company is better able to respond to environmental changes.

Managers who tend to make decisions without soliciting input from subordinates are using the following leadership style:

autocratic

The difference between a country's total outflows and inflows of money over a period of time is its _____.

balance of payments

If the Fed believes that inflation is a problem, it will:

bring about an increase in interest rates

The ups and downs due to the expansion and contraction of the economy constitute the _____.

business cycle

Which of the following are provided to business people by the SBA?

business training individualized advice by a team of retired executives help in obtaining financing

Showing who reports to whom, an organization's _______ describes the authority relationships among people working at different levels.

chain of command

Confusing and error-riddled documents (including emails) make for poor messages and reflect poor _______ skills.

communication

When companies give employees time off to do volunteer work, which stakeholders are they being responsible to?

communities

If a manager makes a decision that financially benefits the manager but harms the company, this is an ethical issue related to _________

conflict of interest

The most small businesses in the goods-producing sector are in __________

construction

When Sam noted that the amount of electricity used in the factory was 20 percent higher than expected for the year, he was involved in:

controlling

When a car dealership sales manager compare sales target for the month against the actual revenue from her salespeople, she is involved in _____ function of the management.

controlling

When they assess the success of plans and decisions and take corrective action when it's needed, managers are _______.

controlling the business

When a country has experienced an unfavorable balance of payments for the many years, the stability of its _____ may be in jeopardy.

currency

Among other things, many MNCs have increased their sensitivity to local market conditions by _____.

decentralizing decision making

Unethical behavior in organizations can be reduced if management does all of the following except:

depend completely on employee's personal ethics

Middle managers in an organization are responsible for:

develop and implement activities

When it distributes a portion of its income to shareholders in the form of cash payments, a corporation pays out _____.

dividends

All of the following are common titles among first-line managers except _______.

division manager

All of the following are advantages of the functional approach to organization except ______.

easy communication between units

In marketing, supply and demand interact to create a(n) _____price—the price at which buyers are willing to purchase the amount that sellers are willing to sell.

equilibrium

The first step to take in the control process is to ____________

establish standards by which performance is measured

Determining the reasons for the deviations from the standard in work performed is part of the _______ process.

five-step-control

McDonald's is a _____ that grants ____ to a _____ who owns and operates individual restaurant.

franchise; franchisee; franchisor

A office supplies company is organized to serve three distinct groups of customers (college students, business offices, and home offices) is probably organized by:

function

A _______ organization groups together people who have comparable skills and perform similar tasks.

functional

A company with wide varieties of products in different countries to accommodate different customer preferences and competitive environment should organize based on ______ division.

geographical

One way that economists measure the performance of an economy is by looking at a widely used measure of total output know as the _____.

gross domestic product

If you're a U. S. farmer receiving a subsidy, you are _____.

guaranteed a certain price regardless of the market price

Which of the following is not a criteria used by the SBA in defining a small business?

has fewer than 300 employees

As a business owner, you're responsible for making the decisions that pertain to the profitability of your business. This decision-making freedom best reflects the _____ advantage of small business ownership.

independence

When the overall price level of consumer goods goes up, we have _____; when they go down, we have _____.

inflation / deflation

Karen learns from a coworker at her pharmaceutical company that one of the firm's most profitable drugs will be pulled off the market. Before the news becomes public, she sells all of her stock in the company. This action is best characterized as _____.

insider trading

Under a(n) _____ between a U.S.based company and a foreign company, in return for the right to use the parent company's brand name and sell its goods and services, the foreign company is required to adhere to an established business model, including pricing, marketing, and product/service offerings.

international franchising agreement

Under a(n) _____, a foreign company pays a royalty fee to manufacture or sell your U.S. company's products, using your name and processes and perhaps your intellectual property.

international licensing agreement

The ability to get along well with and motivate other people depends on _______ skills and is vital at any level of management.

interpersonal

All of the following are arguments in favor of social responsibility except ______

it increases company's profits

High domestic ____ costs have made international contract manufacturing, or outsourcing, attractive to many U.S. companies.

labor

An organization needs ____ because they create more efficiency and effectiveness.

leaders

If you work for a company that expects you to exaggerate the quality and features of the product but is not to the point where it harms the customers, what is the best option for you: ________

leave the organization and find another business that is ethical

Because the conspiracy of fraud was brought to an end with Whistle Blower Cynthia Cooper's intervention, WorldCom investor and employee losses were _____

less

If the U.S. dollar goes down relative to a foreign currency, buyers using that foreign currency pay ____ for American goods and services.

less

Which of the following is among the rewards of being a small business owner?

lifestyle freedom

In a(n) _____ partnership, a single partner runs the business and any number of other partners have little involvement in it.

limited

The most important benefit of incorporation is the _____ feature of corporations.

limited liability

The _____ in a limited partnership has(have) limited involvement in the business and suffer loss only to the extent of their business investments.

limited partners

The disadvantages of buying a franchise include the following except:

management assistance

A(n) ________ chart is a diagram or visual representation delineating the interrelationships of positions within an organization.

organization

Which of the following is a disadvantage of the corporate form of organization?

owners and managers are not always the same people and may have different goals

Two website designers share equal ownership, profits, and losses in their firm, Jenny and Joe have opted for which legal form of business ownership?

partnership

Under a system characterized by _____ competition, there are many consumers buying a standardized product from numerous small businesses.

perfect

Generally speaking, economic systems can be divided into _____ and _____ systems.

planned / free market

In performing the ____ function, managers set goals and determine the best way to achieve them.

planning

When researching global business opportunities, firms must grasp the cultural, legal, economic, and _____ differences between the home country and the host country.

political

Small businesses often fail because of following except

product innovation

Maria and Jennifer drafted a partnership agreement for their apparel business. Which element below should not have been included?

projected financial statements

According to your textbook, the 4 phases of the business cycle are:

prosperity, recession, depression, recovery

The automobile industry conducts extensive safety testing before introducing new models, and recalls _____.

remain common

Businesses are more willing to sell a product when the price _____ and less willing to sell it when the price _____.

rises / falls

Nations practice dumping in order to ____.

sell off surpluses or obsolete domestic goods that can't be sold in the home country

An organization's culture is strongly influenced by its _____, who inform members what's considered acceptable behavior and what happens if it's violated.

senior executives

In a _____ economy, the government controls selected major industries, such as utilities, banking, and health care, while allowing individual ownership of other industries.

socialist

Under the ____ form of ownership, the business dissolves upon the owner's death.

sole proprietor

If you want to own the business yourself, you might consider setting up as a(n) _______

sole proprietorship

Fiscal policy relies on the government's powers of _____.

spending and taxation

What is not a typical title of a senior manager?

supervisor

Lumber can be produced in Canada at a lower cost than in the U.S. When Canadian lumber is shipped into the U.S., its price is raised about 20% to allow the U.S. lumber industry to remain competitive. This is accomplished through a(n) _____

tariff

According to your textbook, Ethics refers to:

the ability know right from wrong and to know when you are practicing one instead of the other

Which of the following is the least likely reason that a business fails?

they focus on the customer

Leading economic indicators predict the status of the economy over the course of _____.

three to twelve months

Policies that restrict free trade among nations are called _____.

trade controls

Mary who exercises her authority according to her rank in the organization and focuses on disciplining those with poor performance, is best characterized as what type of leader?

transactional

One useful indicator of the outlook for future jobs is the number of new _____.

unemployment claims